China is one of the most important markets for Tesla. However, the Americans are increasingly bothered by Chinese manufacturers of electric cars, such as BYD. That company sold a record number of cars in China last month: more than 200,000 units. In addition, several manufacturers have been added, such as Nio and Xpeng. They are working hard to bring more and more models onto the market.
Chinese manufacturers accounted for 80 percent of domestic electric vehicle sales in the first seven months of the year.
Tesla’s price cuts apply to the popular Model 3 and the Y SUV, among others. “Competition among electric car manufacturers is very fierce this year. That is why Tesla has decided to deal a blow to its competitors with this price reduction,” said a market expert at a Shanghai consultancy.
Earlier this year, Tesla made price increases in China. The group has recently expanded the production capacity of its factory in Shanghai. About 1 million cars can roll off the production line there every year.